Question 5 Which one of the following statements concerning financial leverage is correct? The benefits of leverage are unaffected by (A) changes in a firm's earnings before interest and taxes. Financial leverage is always beneficial to a firm B when the interest rate on the debt is less than 10 percent. A firm employing leverage will always have a higher earnings per share than a firm which does not employ leverage. If a firm employs financial leverage, the shareholders will be exposed to greater risk